Taka weakens vs dollar for fifth day

The taka weakened further yesterday as concerns grew over exports and remittance inflows, amid the ongoing war in Iran, which has driven up oil prices and raised fears of an energy crisis.

The dollar rose by up to Tk 0.8, reaching Tk 122.63 in the spot market, compared with a high of Tk 122.55 the day before.

In the interbank market, the weighted average rate of the dollar climbed to Tk 122.58 from Tk 122.49. This marks the fifth consecutive day of gains for the dollar after remaining stable at Tk 122.30 per US dollar for over a month, according to Bangladesh Bank data.

Globally, the US dollar strengthened as turmoil in the Middle East intensified, pushing investors toward the currency amid rising oil prices caused by the US-Israel war on Iran.

Local bankers said the recent rise in the dollar is partly due to the Bangladesh Bank’s decision to avoid intervening in the market.

Since the start of fiscal year 2025-26 (FY26), the central bank has purchased over $5 billion from the foreign exchange market to rebuild reserves, which had fallen below $20 billion after earlier sales aimed at preventing a sharp fall in the taka’s value.

Between FY21 and FY25, the Bangladesh Bank sold more than $25 billion from its reserves to help the government pay for fuel, fertiliser, and food imports.

As of 8 March 2026, Bangladesh’s gross forex reserves stood at $34 billion, while readily usable reserves, calculated using an IMF formula, were $29.38 billion.